First, on a spreadsheet or piece of paper, list out all of your liquid assets:
– Checking Account: $10,000
– Savings Account: $40,000
– Brokerage Account (Stocks): $20,000
– Total Liquid Assets: $70,000
Next, list out all of your current liabilities. For this example, we’ll use 1 month of debt payments:
– Mortgage Payment: $1,500
– Car Payment: $500
– Credit Card Payment: $1,000
– Student Loan Payment: $300
– Total Current Liabilities: $3,300
Finally, subtract your current liabilities from your liquid assets to get your liquid net worth:Liquid Assets ($70,000) – Current Liabilities ($3,300) = Liquid Net Worth ($66,700)